The market for traditional Indian snacks is witnessing a resurgence, with sales matching those of western munchies in the latest fiscal year, reflecting a growing preference for ethnic flavours among consumers.
During the financial year 2023–24, products like sev bhujia, namkeen, dal, chivra, chanachur, and fried nuts collectively contributed approximately ₹50,800 crore to the salty snacks market, as per NielsenIQ data. This segment, encompassing both domestic and overseas brands, now constitutes half of all salty snack sales, a significant shift from previous years dominated by western snacks such as potato wafers and finger sticks.
Suresh Goel, CEO of Bikanervala Foods, noted, “Indians have a general taste for ethnic food, which is now reflected in snacks as well.” He highlighted the expanding reach of traditional snack makers into smaller villages, a trend that has reversed the earlier dominance of western snacks sold by large corporations like Pepsi Frito Lays and ITC Foods.
Traditional snacks now command nearly 56% of the overall market by volume, driven by their affordability and larger pack sizes catering to price points popular at ₹5 and ₹10. The market dynamics have also seen a notable rise in regional players transitioning into national contenders, offering consumers greater value through competitive pricing and expanded product ranges.
Krishnarao Buddha, Senior Category Head at Parle Products, emphasized the industry’s evolution, stating, “With a heightened focus on ethnic snacks across the board, we anticipate increased sales and prominence of traditional snacks. This shift is accompanied by a move from unbranded to organized players in the market.”
The snack market is segmented into four categories, with traditional snacks like namkeen and bhujia leading the charge, followed by western snacks such as potato chips. Other categories include extruded snacks, such as cheese balls and puffed snacks. The transition towards branded namkeen post-pandemic underscores consumers’ preference for packaged products over loose, bakery-sold alternatives, driven by hygiene considerations.
Major players in the sector, including Haldiram’s, PepsiCo, and Balaji Wafers, have reported robust growth in sales, underscoring the expanding footprint of traditional snacks in India’s evolving consumer landscape.